Morgan Stanley analysts initiated coverage of Arcos Dorados, which began trading publicly on the New York Stock Exchange in April, with an overweight rating and $26 price target. The analysts said Arcos Dorados is operating in an attractive and underpenetrated region.
Capstone analysts initiated coverage of Boston Beer ( SAM - Get Report) shares with a hold rating and $90 price target. The firm said that commodity costs continue to rise and that the Sam Adams maker has limited pricing power given its competitive industry. Boston Beer expects fiscal 2011 EPS between $3.45 and $3.95. Analysts, on average, expect the brewer to earn $3.91 this year. Pork producer Smithfield Foods ( SFD) saw its earnings estimates cut through 2012 by analyst at JPMorgan. The firm lowered its price target on Smithfield by $3 to $20, and set a neutral rating on the stock. Analysts said corn prices continue to rise even as hog prices fall, indicating that pork margins are shrinking. Last month a Smithfield Foods subsidiary, Premium Standard Farms, divested a 21,500-acre hog production site in Texas to Cargill for $33 million. Blackberry maker Research in Motion ( RIMM) shares were downgraded at Wunderlich from buy to hold. The firm had a $46 price target on the stock. It said the downgrade was a result of Research in Motion losing its foothold in the smartphone market.
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